[Chapter-delegates] Join our call to stop the sale of .org

Mon Nov 25 23:22:51 PST 2019

I wish the PIR deal would just go away. ISOC has many important things to
work on and so do I. But we're waist deep in the Big Muddy and pushing on.
The new information makes it obvious the right thing now is to quickly and
quietly kill the whole thing. But the people in charge are too proud to
admit they made a mistake. That's hard for any of us.  Below: t should be
easy to negate the deal. IANAL

The most horrifying aspect is that the Internet Society Chair and CEO
totally abandoned our ideal of
"multi-stakeholder/dempcracy/representation/"

-------------
It's not right to say there is "little question the sale benefits ISOC,"
Joly. *I don't know if the sale benefits ISOC because most of the key
information is secret.* Transactions of this size for a non-profit almost
always disclose the amount and major terms. Unless you have that
information, it's impossible for Joly or me to say whether it is a good or
bad deal.

Do you know the terms? If not, how can you come to any conclusion?
First: PIR gave ISOC $74 million in 2017 and $48 million in 2018. Which
will probably go up with inflation.
It would require just under* US$1 billion net in an endowment* at 5%
interest to match $48M, more if the $74 million is more accurate. (There
was an unexplained $40 million in 2017. It funny things like that that make
all of us skeptical.)

 At $400M, it's a bad deal. At the rumored $billion + it might not be a bad
deal, although it still has problems. (Calculations on request.)

Second, nearly anyone who reads the reporting around the world would infer
our management and board are corrupt, greedy, SOBs if they don't take the
opportunity to exit the deal. That is not so, but we have to accept that is
how ISOC is now perceived if we are going to repair our reputation. *I know
most of the people. They are honorable. I was amazed to see what they
agreed to. It only makes sense if there's a big problem not disclosed. But
even the best people don't always make sense.*

*Note: It should be easy to negate the deal. IANAL, but PIR is a
Pennsylvania not for profit and I have reviewed the Pennsylvania law. Given
the issues I found, as well as the 5,000 plus people ready to raise
objections, the PA government is likely to spend a long time reviewing the
deal. Many beyond those already public doubt the deal, including privately
on the ICANN Board. We should assume the deal may not close on time.*
In addition, the billionaires funding the deal (Perot, Johnson, and
Romney) obviously don't want the unfavorable publicity. Romney is now a
Senator considering a run against Trump. He had some dubious tax shelters.
Perot has "a singular focus on long-term value creation." The last thing he
wants is an investment where many will urge ICANN to take back the license.
None of the private equity folk want to be in the middle of a pr storm. (I
count over a dozen original articles, a lot for anything Internet short of
a new phone.)

*The decision to hide basic information in the beginning, reinforced
several times, immediately raises questions. The refusal to answer
reasonable reporters' questions only makes sense if there is something to
hide. Anyone sensible will infer something is fishy unless the terms are
clear.  *

Third, we are dealing with people we should not
Fadi Chehade, a guy I like, went from running ICANN to making domain deals.
As chief of ICANN, he made many bad decisions that dramatically increased
the total cost of Internet domains. Totally unconfirmed rumors are that he
will make tens of millions or more from the domain business. ISOC leaders
have previously criticized Fadi for deals he made with China and his close
ties there. (I think he was right on them.)
John Nevett, CEO, Public Interest Registry, not long ago worked with the
MPAA on suspending domains without a court order at Donuts. After years in
the domain business, he will probably be dealing with these guys in the
futre. He should have recused.
Four of the seven board members of PIR have professional ties to the domain
industry. Several are consultants, whose clients are not disclosed. Most
should have been recused.

*Forth, we just totally abandoned the "multi-stakeholder" model we have
fiercely advocated for more than a decade, including within ISOC. *
Andrew :  "Internet Society is not governed as a member organization under
the meaning of that in US law. *That is you don't consult with people**." *
https://isoc.live/bot/148/ISOC_BOT_148_Q&A.pdf

*Andrew misspoke. The Board and Director under US law can and often have
committed to precisely such consultations. The law doesn't require them but
certainly allows them. *

*Chairman Camarillo previously confirmed ISOC model is multi stakeholder.
So have Sullivan, previous CEO Kathy Brown, Vint Cerf and almost everyone
senior in ISOC since I got active.*

*But he has forgotten what he previously said and now*

"People thinking that is unclear whether we are a member based organization
or cause driven. It's very clear that we are a cause driven organization.
... The current structure is quite clear. We have this type of governance.
... I think that that answers the next question that Richard had, which
was: What measures will the board put into place to ensure that all
important decisions are presented to the ISOC constituencies, including the
chapters, for comment before they are taken? I think what you have just
said is that is neither a requirement nor in fact desirable, because of the
governance structure that the organization has. *"*

I've written about this before.
http://netpolicynews.com/index.php/89-r/1089-after-70-000-member-loss-can-andrew-sullivan-revive-the-internet-societyAfter
70,000 member loss, can Andrew Sullivan revive the Internet Society?
<http://netpolicynews.com/index.php/89-r/1089-after-70-000-member-loss-can-andrew-sullivan-revive-the-internet-society>
0 Comments
<http://netpolicynews.com/index.php/89-r/1089-after-70-000-member-loss-can-andrew-sullivan-revive-the-internet-society#disqus_thread>

In my opinion, The Internet Society can and should be the most important
advocate for a better Internet. It hasn't been during the seven years I've
been active. With US$30 million in annual subsidy from ICANN's delegation
of .org registrations, we have far more resources than any other
independent organization.

*Instead, ISOC policies have been so uninspiring membership has fallen from
110,000 to the 40,000's.* The Internet in this period has more than doubled
in size and ISOC has been spending US$millions each year on membership
development, communication, etc. (The 110,000 figure is from the ISOC home
page early in the year. It probably was inflated, which would be an even
bigger problem.)

Sullivan is a respected technologist with experience at the IETF & in ICANN
issues. I've had some back and forth over the years; he's well informed on
those topics. I'm sure he believes "The Internet is for everyone," the old
slogan of the Internet Society.

Former CEO Kathy Brown said ISOC must be, "Global, Independent, Democratic,
Open, & Transparent." and a "Bottom-up multistakeholder organization."
Kathy is extremely capable and a friend, but couldn't find a way to deliver
on her promises. We need strong, independent chapters. On policy, we need
concrete proposals that will make a difference and inspire people to join.
Here are some ways.

Some ideas that should be easy for everyone to accept.

*First, we should practice what we preach on openness, transparency, and
bottom-up decision-making.*

Editor, https://Fastnet.news <http://Fastnet.news> https://wirelessone.news
<http://wirelessone.news>
Reply "sub" for a free subscription to Fast Net News and Wireless One. (2
or 3/month)

On Mon, Nov 25, 2019 at 9:04 PM Joly MacFie via Chapter-delegates <
chapter-delegates at elists.isoc.org> wrote:

> There is little question the sale benefits ISOC.
>
> And what benefits ISOC benefits the whole Internet Community, not just
> .org registrants.
>
> Think before you sign anything.
>
> joly
>
> On Mon, Nov 25, 2019 at 8:29 PM Hermanos Bambuseros via Chapter-delegates <
> chapter-delegates at elists.isoc.org> wrote:
>
>> Hi, in order to inform our board can we have some details about what will
>> be the real impact of joint this statement? And is there a letter or
>> something to sign?
>>
>> Some other info will be also interesting to know such us economic impact
>> and why is not a good option for ISOC (from an economic point of view) this
>> sale
>>
>> Thank you for this initiative
>>
>> Carlos Vera
>> Isoc Ecuador
>>
>> El 25 nov. 2019, a la(s) 19:05, Alexander Blom via Chapter-delegates <
>> chapter-delegates at elists.isoc.org> escribió:
>>
>> 
>> Dear all,
>>
>> We call on ISOC Global to reverse the sale of the .ORG domain to private
>> equity firm Ethos Capital.
>> We invite all ISOC chapters across the world to join us in this
>> statement.
>>
>> In May 2002, ICANN formulated a number of criteria for the reassignment
>> of the .org Top Level Domain, amongst which:
>>
>>    - Inclusion of mechanisms for promoting the registry's operation in a
>>    manner that is responsive to the needs, concerns, and views of the
>>    noncommercial Internet user community.
>>    - Demonstrated support among registrants in the .org TLD,
>>    particularly those actually using .org domain names for noncommercial
>>    purposes
>>    - The registry fee charged to accredited registrars should be as low
>>    as feasible consistent with the maintenance of good-quality service.
>>
>> In response, upon selection, then ISOC Global President Lynn St. Amour
>> issued the following statement: "We are thrilled to have this opportunity
>> to serve the worldwide .ORG community and are dedicated to making .ORG a
>> truly global home that will serve the unique interests of non-commercial
>> organizations on the Internet."
>>
>> We believe that the 2019 decision of ISOC Global to sell PIR to private
>> equity firm Ethos Capital is not in line with ICANN’s criteria from 2002
>> and the subsequent promise from ISOC Global.
>> Despite ISOC Global's assurances to the contrary, we share the misgivings
>> of the international community about giving a single privately owned entity
>> the power to raise tariffs, implement rights protection mechanisms possibly
>> leading to censorship, and suspend domains at the request of local
>> governments.
>> We also fear that ISOC Global's reputation has been severely harmed by
>> even contemplating this transaction.
>>
>> We therefore call on ISOC Global's leadership to reverse this decision,
>> and do its utmost to restore faith in ISOC as the one global organisation
>> that through its many professionals and dedicated volunteers sincerely
>> strives for an internet for everyone.
>>
>> We invite all ISOC chapters to join us in this statement by responding to
>> this message.
>>
>> On behalf of the Internet Society Netherlands Chapter,
>>
>> Alex Blom
>> Chairman
>> _______________________________________________
>> As an Internet Society Chapter Officer you are automatically subscribed
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>> View the Internet Society Code of Conduct:
>> https://www.internetsociety.org/become-a-member/code-of-conduct/
>>
>> _______________________________________________
>> As an Internet Society Chapter Officer you are automatically subscribed
>> to this list, which is regularly synchronized with the Internet Society
>> Chapter Portal (AMS):
>> https://admin.internetsociety.org/622619/User/Login
>> View the Internet Society Code of Conduct:
>> https://www.internetsociety.org/become-a-member/code-of-conduct/
>>
>
>
> --
> ---------------------------------------------------------------
> Joly MacFie  218 565 9365 Skype:punkcast
> ---------------------------------------------------------------
> _______________________________________________
> As an Internet Society Chapter Officer you are automatically subscribed
> to this list, which is regularly synchronized with the Internet Society
> Chapter Portal (AMS):
> https://admin.internetsociety.org/622619/User/Login
> View the Internet Society Code of Conduct:
> https://www.internetsociety.org/become-a-member/code-of-conduct/
>
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